Ian Woodman, Idaho co-founder of Instant Tax Solutions, knows that for a tax professional, staying current on tax laws is a must. For the average taxpayer, however, this information can seem complex and hard to understand, explains Ian Woodman. Idaho residents have long depended on Instant Tax Solutions to carefully explain the changes in tax laws in an easy to understand manner. Today, Ian Woodman, Idaho tax professional, explains some important tax changes for 2012.
Q: One of the biggest changes is to the standard deduction on tax returns this year. How is this impacting your customers?
Ian Woodman: Idaho taxpayers are like the rest of the country in that they tend to claim the standard deduction. In fact, the IRS has found that two of every three taxpayers claim the standard deduction. So this year’s increase to $5,950 for single taxpayers and those who are married but filing separately. The standard deduction for head of household is now $8,700 and married filing jointly and widowed individuals who qualify will have a standard deduction of $11,900.
Q: The mileage rate went up as well, didn’t it?
Ian Woodman: Idaho residents who claim mileage can now take 5.5 cents per mile for business travel and 14 cents per mile for charitable travel.
Q: Is the earned income credit still available to those earning less than a certain amount?
Ian Woodman: Idaho residents who qualify will see an increase in earned income credit this year. The maximum starts at $13,980 for those without children and goes up to $50,270 for married couples with three or more children who are filing jointly.
Q: Did anything else change in the 2012 tax season?
Ian Woodman: Idaho residents will specifically want to read up on limit increases for 401k contributions and the wage limit increase for social security.
Ian Woodman, Idaho co-founder of Instant Tax Solutions, launched the tax resolution service in 2008, watching it grow to a national provider of assistance to taxpayers. Ian Woodman handles Idaho based Instant Tax Solutions’ human resources and internal accounting. Prior to his work with Instant Tax Solutions, Ian Woodman ’s Idaho career centered on high-end homebuilding. Ian Woodman, Idaho businessman, and two business partners founded SIR Custom Homes, which was a successful homebuilder until the real estate market crashed in 2007.